Taxpayers to cover James Hardie asbestos shortfall

Taxpayers to cover James Hardie asbestos shortfall

Business

Date

February 27, 2015

(1)

Tim Binsted

The NSW government will extend funding to asbestos victims in case of a shortfall in funds from James Hardie Photo: Bloomberg

The New South Wales government will extend further credit to the Asbestos Injuries Compensation Fund to prevent victims being paid in instalments in the event payments from James Hardie Industries are insufficient to cover claims.

On Friday the NSW government said it has agreed to amend the terms of its loan facility with the AICF. The changes extend the term of the loan and allow the fund to draw down the full $320 million of the facility rather than $214 million previously stipulated.

The AICF warned last year that a spike in mesothelioma claims, the most expensive asbestos victims claims category, could force it to enter an “approved payment scheme” as of July 1.

The scheme, which would have allowed compensation to be paid to some victims in instalments rather than upfront due to a lack of funds, sparked outrage among victims groups.